FDNY S15 Supervision Of Foam-Water Sprinkler
Systems (Citywide) Practice Exam Questions And
Correct Answers (Verified Answers) Plus Rationales
2026 Q&A
1. What is the definition of price elasticity of demand?
Price elasticity of demand measures the difference between
consumer willingness to pay and actual price.
Price elasticity of demand measures how the quantity demanded
of a good changes in response to price fluctuations.
Price elasticity of demand measures the total revenue generated
from sales.
Price elasticity of demand measures the equilibrium price in a
market.
2. Describe the significance of price elasticity of demand in economic
analysis.
Price elasticity of demand is significant because it helps
economists understand consumer behavior and how changes in
price affect overall demand.
Price elasticity of demand is significant because it determines the
total cost of production.
Price elasticity of demand is significant because it measures the
profitability of a firm.
Price elasticity of demand is significant because it indicates the
, level of competition in a market.
3. If the price of a product increases by 10% and the demand is unitary elastic,
what will happen to the quantity demanded?
It will decrease by 10%.
It will remain unchanged.
It will decrease by more than 10%.
, It will increase by 10%.
4. What do supply and demand diagrams represent in economics?
The relationship between consumer surplus and producer surplus
The relationship between supply, demand, price, and quantity
The relationship between marginal cost and marginal revenue
The relationship between total revenue and total cost
5. Describe the concept of consumer surplus in your own words.
Consumer surplus is the profit made by sellers after selling a
product.
Consumer surplus is the measure of how much quantity demanded
changes with price.
Consumer surplus is the total amount spent by consumers on
goods.
Consumer surplus is the difference between the maximum price a
consumer is willing to pay for a good and the actual price they
pay.
6. What is the primary focus of classical economics?
Monetary policy effects on inflation
Free markets and self-regulating nature of the economy
Government intervention in markets
Behavioral economics and consumer choices
7. What is the formula used to calculate price elasticity of demand?
Ed = total revenue / quantity demanded
Ed = % change in price / % change in quantity demanded
, Ed = % change in quantity demanded / % change in price
Ed = quantity demanded / total revenue
8. What does marginal utility refer to in economics?
The cost of producing one more unit of a good
The total satisfaction from all units consumed
The additional satisfaction gained from consuming one more unit
of a good
The price consumers are willing to pay for a good
9. Marginal utility is
Explains why product supply curves slope upward
Is the extra satisfaction from the consumption of one more unit of
some good or service
Is the extra output a firm obtains when it adds another unit of labour
Typically rises as successive units of a good are consumed
10. Economist Alfred Marshall is best known for the...
supply and demand model.
surplus/shortage paradox.
market equilibrium theory.
law of demand and supply.
11. Which of these goods is inelastic?
A product that has a small change in price will increase/decrease
the quantity demanded a ton
A product that has a small change in price will increase/decrease
the quantity demanded very little
Systems (Citywide) Practice Exam Questions And
Correct Answers (Verified Answers) Plus Rationales
2026 Q&A
1. What is the definition of price elasticity of demand?
Price elasticity of demand measures the difference between
consumer willingness to pay and actual price.
Price elasticity of demand measures how the quantity demanded
of a good changes in response to price fluctuations.
Price elasticity of demand measures the total revenue generated
from sales.
Price elasticity of demand measures the equilibrium price in a
market.
2. Describe the significance of price elasticity of demand in economic
analysis.
Price elasticity of demand is significant because it helps
economists understand consumer behavior and how changes in
price affect overall demand.
Price elasticity of demand is significant because it determines the
total cost of production.
Price elasticity of demand is significant because it measures the
profitability of a firm.
Price elasticity of demand is significant because it indicates the
, level of competition in a market.
3. If the price of a product increases by 10% and the demand is unitary elastic,
what will happen to the quantity demanded?
It will decrease by 10%.
It will remain unchanged.
It will decrease by more than 10%.
, It will increase by 10%.
4. What do supply and demand diagrams represent in economics?
The relationship between consumer surplus and producer surplus
The relationship between supply, demand, price, and quantity
The relationship between marginal cost and marginal revenue
The relationship between total revenue and total cost
5. Describe the concept of consumer surplus in your own words.
Consumer surplus is the profit made by sellers after selling a
product.
Consumer surplus is the measure of how much quantity demanded
changes with price.
Consumer surplus is the total amount spent by consumers on
goods.
Consumer surplus is the difference between the maximum price a
consumer is willing to pay for a good and the actual price they
pay.
6. What is the primary focus of classical economics?
Monetary policy effects on inflation
Free markets and self-regulating nature of the economy
Government intervention in markets
Behavioral economics and consumer choices
7. What is the formula used to calculate price elasticity of demand?
Ed = total revenue / quantity demanded
Ed = % change in price / % change in quantity demanded
, Ed = % change in quantity demanded / % change in price
Ed = quantity demanded / total revenue
8. What does marginal utility refer to in economics?
The cost of producing one more unit of a good
The total satisfaction from all units consumed
The additional satisfaction gained from consuming one more unit
of a good
The price consumers are willing to pay for a good
9. Marginal utility is
Explains why product supply curves slope upward
Is the extra satisfaction from the consumption of one more unit of
some good or service
Is the extra output a firm obtains when it adds another unit of labour
Typically rises as successive units of a good are consumed
10. Economist Alfred Marshall is best known for the...
supply and demand model.
surplus/shortage paradox.
market equilibrium theory.
law of demand and supply.
11. Which of these goods is inelastic?
A product that has a small change in price will increase/decrease
the quantity demanded a ton
A product that has a small change in price will increase/decrease
the quantity demanded very little
