What play do I make?

[booboom]

Playing in a low limit game in my dorm (I'm in college) I find myself on the button with AQ of hearts. First position, who is a decent player, raises 3 dollars (It's only a $20 buy-in game) and I re-raise 5 on top. The big blind calls the $8 ( which is a pretty loose player and I put him on a medium pair, maybe 6's to 10's). First position then takes the opportunity to reraise another $5. At this point I figure that I'm up against QQ's, KK's, AA's, or AK so I just call. The big blind then takes the opportunity to reraise all in for $17 more. 1st position quickly calls and now I'm almost 100% sure that I'm beat but I do know that I'm not up against AA's or KK's because knowing him he would have reraised all in as well. I figure that 1st position has me beat and I lay down my AQ. At this point I also only had $17 left. When it was time to flip the cards my assumption proved to be right about the two players. 1st position had AK and big blind had pocket 77's. The hand played out and I would have ended up getting the nut flush. My question is, should I have called all in even though I knew I was beat and get 3 to 1 on my money or was it the correct laydown?
I would appreciate it if someone could tell me what they would do if they were in this situation. Thanks.

[BigBiceps]

You should have folded for a loss of $8 instead of a loss of $13. AQ can be easily dominated against the 4 hands you mentioned, but you stated that you "just call" even though you thought you were dominated.

Even though you would have made the flush and won alot, more often you will just lose more by calling.

[heatscan]

[ QUOTE ]
At this point I figure that I'm up against QQ's, KK's, AA's, or AK so I just call.

[/ QUOTE ]

I would fold here.