Correct understanding: the demand for cars refers to the degree of social demand for cars, rather than individuals not buying cars because of rising fuel costs. Even if he doesn't buy a car, he still needs a car, but he just feels that he has no money.
Absolutely wrong. In today's society, cars are already a necessity. Without a car, the normal operation of many units and people will be affected. The rise in oil prices only increases the cost of car use, but it does not mean that cars are not needed.
C should be wrong, anyway, remember that as long as macro issues such as futures are involved, the long-term impact is greater than the short-term impact.