Intermediate Microeconomics -- Assume the market for generic aspirin is perfectly competitive. At equilibrium, the price elasticity of demand for generic aspirin is characterized as ED = − 1/5. The linear market demand and linear market supply can be characterized as follows:
QD =b−35P
QS = 510P − 938
Where b is a numerical value, P represents the price of one box of generic aspirin, and Q represents the number of boxes demanded or supplied per day. (a) What is the equilibrium value of price and quantity? (b) What is the value of b?