Problem
Suppose a finite set $G$ is closed under an associative product and that both cancellation law hold in $G$. Prove that $G$ must be a group. Also show by an example that if one just assumed one of the cancellation laws holds, then the conclusion need not follow.
This is from Topics in Algebra by Herstein
Specific question
How can I prove the properties of group from the both cancellation laws? In short, the identity and invertibility. If $a$ and $b$ belong to $G$ then $ab$ belongs to $G$ (closure property), but does it imply that it has an identity element.