Economic Ignorance On Display. Demand is not affected by price. Demand is the relationship between price and quantity demanded, so it reflects the quantity demanded at various prices. When demand shrinks or grows, it does so at all prices. In other words, if demand increases, the quantity demanded at every price increases. Therefore, a reaction to changing prices is simply a movement up or down the demand curve.
There are several factors that influence demand, such as (1) the number of buyers/consumers in the market, (2) changes in tastes and preferences or style, (3) price and availability of substitute or complimentary goods in the market, (4) changes in income and/or wealth that cause a shift in consumption choices, (5) seasonal considerations that influence consumption choices, (6) demographics, and other miscellaneous factors like regulation, taxation, etc that can influence consumption choices. These factors interact to cause consumption to increase or decrease and thus influence the quantity demanded at all prices.
Hogwash. However, given the rest of your post, it seems a matter of semantics and/or definition of terms.
US still having children (consumers)despite gasoline prices.
a colorful explanation, but you can't be serious.
the major factor at work here - 70% of gasoline is purchased by credit card. the increased costs of gasoline, are simply being rolled into consumers debt load - they are financing it, like they finance their other purchases, by the way they manage their credit cards.
want to see demand for gas drop in relation to higher prices (what should be happening) - ban credit card purchases for gas, cash or debit only. you'll see a 10-15% decline in demand within one month.
right now, a consumer spending $100 more per month on gas on their credit card - the true cost to them, is simply whatever the bump in their monthly payment is as a result of the extra $100 they are charging. the true effect of the run-up is gas prices, is being insulated to the consumer, by use of credit cards. so demand doesn't fall.