What role does setting play in a short story?

Can you explain the significance of setting in a short story? How does it contribute to the overall narrative and the development of characters? Is it necessary to provide a detailed description of the setting, or can it be subtle and inferred by the reader? Additionally, how does the setting impact the mood and atmosphere of the story? I'm curious to understand the intricacies of how setting can enhance a short story's effectiveness and impact on the reader.