Rebeccar, you seem to be missing my point. You seem stuck. Are you trying to make a point or are you confused? What is the point you are trying to make?
If you have a college in the Bronx, and another in Manhattan, you might expect that the dorms in Manhattan could command a higher price then those in the Bronx because other apartments are expensive in Manhattan-there are not cheap options. If the college in the Bronx priced their dorms as high as the ones in Manhattan, students would be unlikely to stay in the dorms for 4 years-because they could move to readily available less expensive options since housing prices tend to be lower in the Bronx. If the dorms in the Bronx were priced at double the price of other available real estate a student from, say Syssot would probably know that the dwelling was priced quite high relative to other available housing. But, students who come from, say San Francisco, may be unaware that property prices in the Bronx are usually much lower than those in Manhattan and since San Francisco is also very expensive, they may be more used to high prices-thus not do much comparison-So it is possible that students would be willing to pay the inflated prices if they came from a place where prices were similarly high and they were unaware that the prices in the Bronx are usually low.