The file is in
/etc/X11/xorg.conf
and editing it happens using any text editor, either in command line (pico, nano, vi, joe, emacs, ...) or in X (gedit, kate, ...). Though after you've edited that you need to restart your X server for the changes to take effect. This happens most easily by pressing the key combination ctrl+alt+backscape. Rebooting does the same, but it's easier to just restart X.
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