Can anyone explain how this is possible?

1. Let a and b be equal non-zero quantities

a = b

2. Multiply through by a (^ : is raised to)

a^2 = ab

3. Subtract b^2

a^2 - b^2 = ab - b^2

4. Factor both sides

(a - b)(a + b) = b(a - b)

5. Divide out (a - b)

a + b = b

6. Observing that a = b

b + b = b

7. Combine like terms on the left

2b = b

8. Divide by the non-zero b

2 = 1