SPACE refers to the area within, around, above or below an object or objects. It is important to creating and understanding both two dimensional or three dimensional works of art. With three dimensional art the space things occupy is real as is the space around object. wcs.k12.mi.us

SHAPE is defined as a two dimensional area that stands out from the space next to or around it due to a defined or implied boundary, or because of differences of value, color, or texture. Shapes are recognizable objects and forms and are usually composed of other elements of design. wikipedia.org