Can there exist a non-associative operation with an identity element,such that every element has an inverse?

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As far as my understanding goes, the inverse of each element need not be even unique based on what is given. But it looks like they are asking for a where it is actually unique despite it needing not to be. And I am not being able to come up with an example even after trying trying. Can you guys suggest a few examples. And also, can you please share the thought process behind it, like how you came up with it?

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Well, if you don't have any constraint on the set and the operation it's not hard to create one by just adding new element to a set with a non associative operator and then extending the operator.

For instance take $S=\mathbb{R}^3$ with the vector product $\wedge$, which is a not associative operator which has no inverse. Take a copy of $S$ and call it $\bar S$. Assume there is a bijection $S\to \bar S$ with maps a element $s$ in $\bar s$. Define a new set $S'$ as $$S' = S\cup \bar S\cup\{E,F\}\,.$$ You can extend $\wedge$ in the following way. For $v,w\in S$ just the usual $v\wedge w$. For $\bar v,\bar w\in\bar S$ you can define $\bar v\wedge \bar w = \overline{v\wedge w}$. For $v\neq w$ define $v\wedge \bar w = \bar v \wedge w = F$. Then $v\wedge \bar v=\bar v \wedge v = E$. Finally define $F\wedge v = v\wedge F =F\wedge \bar v=\bar v\wedge F = F$. Then $F\wedge F = E\wedge E = E$. And finally make $E$ to be the unit element, i.e. for all $s\in S'$, $s\wedge E = E\wedge s = E$.

It seems very complicated but the idea is just that if you have a set with an associative operation you can add a copy of being the inverse, together with a neutral element. Then I introduced $F$ just to make it easier to extend the operation.

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Multiplication of (nonzero) octonions is non-associative but has inverses.

For a simpler if less natural example, consider $\mathbb{R}\cup\{\infty\}$ and let $*$ be the operation given as follows:

  • $\infty*a=a*\infty=a$ for all $a$.

  • For $a\not=b$ in $\mathbb{R}$, we set $a*b={a+b\over 2}$.

  • For each $a\in\mathbb{R}$ we set $a*a=\infty$.

In this structure $\infty$ functions as the identity element and each element is its own inverse, but $*$ is nonassociative.