In a RESTful API resources are identified by URIs and HTTP commands operate upon those resources. The http commands are GET, PUT, POST, and DELETE messages which (very roughly) correspond to read, update, create and delete.
Each web script will negotiate the format of data it will accept and the format of data it will return. In this particular case your decision is easy since this particular resource will only accept ATOM and will only return ATOM.
So to create a new folder you will need to POST appropriate atom content to the correct URI.
One useful trick that may help you is to look at the java script implementation, in this case descendants.post.atom.js. You may also find unit tests calling this script.