Why might some individual's labor supply curve shift from L_I-1 to L_I-2? One possibility would be an increase in non-labor income. An increase a regular source of income which is unrelated to labor (say a trust fund, improved performance of an investment, reduced cost of living etc.) will lead to an increase in the consumption of leisure (a normal good) at all wages, causing a reduction in labor supply.

Another possibility is a change in tastes over income vs non-income earning activities. The birth of a child or a new relatinship might lead to a reduction in labor supply so that more time might be spent in these other activities.

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