When I go to View Page Info -> Media in the Mozilla Firefox (or any other gecko-based browser).
I see one picture there which contains several elements of the site:

My questions are:
How they get separated when rendering the website? (I know it's probably CSS, what I mean is how to define/know which region of this picture is a separated element)
What are the advantages over using one picture for each element?
I would guess this lowers the bandwidth as it has less headers, but I don't know if there is something else about it.