Final Answer:
False. The statement is incorrect. When silk is shipped from China to Atlanta, transportation costs are more likely to increase the overall price of silk in Atlanta compared to China, but it doesn't necessarily make the price of high-quality silk higher relative to low-quality silk.
Step-by-step explanation:
When silk is transported from China to Atlanta, transportation costs play a role in determining the final price of silk in Atlanta. However, these costs primarily contribute to the overall price increase rather than creating a relative difference between high-quality and low-quality silk. Transportation costs involve expenses related to shipping, customs, and logistics, affecting both types of silk equally.
The relative pricing of high-quality and low-quality silk is more influenced by other factors. Production costs, including the expenses associated with cultivating, harvesting, and processing silk, are crucial determinants. High-quality silk may involve more intricate and resource-intensive production methods, leading to a higher base cost. Additionally, market demand, consumer preferences, and competition in Atlanta also contribute to the pricing dynamics.
While transportation costs may lead to a higher overall price for silk in Atlanta compared to China, they don't inherently result in a disproportionate increase for high-quality silk relative to its lower-quality counterpart. The interplay of production, market forces, and consumer behavior remains key in shaping the relative pricing of silk qualities in the destination market.