Claim: A square matrix $\,A\,$ is invertible iff $\,AD=I\,$ for some (square) matrix $\,D\,$
The proof of the above depends on the following
Proposition: in $\,x\in G\,$ is a group with unit $\,1\,$ and $\,xx=x\,$ , then $\,x=1\,$
So using now associativity:
$$(DA)(DA)=D(AD)A=DIA=DA\Longrightarrow DA=I=AD$$
Putting $\,D=A^{-1}\,$ gives us the usual notation for inverse, and the above solves positively both questions:
$$(a) \,\,Ax=b\Longrightarrow A^{-1}Ax=A^{-1}b\Longrightarrow A^{-1}b$$
$(b)\,$It's done above
Added: Following the remarks in the comments, and since we cannot assume any of $\,D,A,DA, AD\,$ is invertible (and thus talking of a group is out of order), I shall try an approach proposed by Rolando (assume the matrices are $\,n\times n\,$):
We're given $\,AD=I,$ . Either in terms of matrices or of linear operators, this means that $\,\dim Im(AD)=n\,$ (is full, i.e. $\,AD\,$ is onto). Now we have a general claim whose proof is elementary:
Claim: If we have functions $\,f:A\to B\,\,,\,g:B\to C\,$ , then $\,g\circ f\,$ onto $\,\Longrightarrow\,g\,$ onto.
From this it follows that $\,A\,$ is onto $\,\Longleftrightarrow \dim Im(A)=n\Longleftrightarrow \dim\ker A=0\,$ ,which means $\,A\,$ is a bijection and, thus, invertible.