When considering PLACE think about how a story might change if it’s in an urban vs. rural area, or if it’s on earth vs. another planet. Think about how the PLACE influences the mood of the story. For instance, a story where most of the action occurs in a spooky house will be very different than if the same story occurred on a tropical island.
The second element of setting is PLACE, or the location of the story. Two stories may occur in the same year, but in different locations, completely changing the setting. Sometimes the PLACE (country, state, city, town, etc.) will be specific and the author will provide lots of details. Sometimes it may be vague and the author will simply indicate a general location like a house or a room.