If f(x)=⅛x, then f(x+h)=⅛(x+h)=⅛x+⅛h; (f(x+h)-f(x))/h is the difference quotient:
(⅛x+⅛h-⅛x)/h=⅛h/h=⅛, so the difference quotient is ⅛.
If f(x)=1/(8x), then f(x+h)=1/(8x+8h).
(f(x+h)-f(x))/h=[1/(8x+8h)-1/(8x)]/h=
(8x-(8x+8h))/(8xh(8x+8h))=
-8h/(64x2h+64xh2)= (divide top and bottom by 8h)
-1/(8x2+8xh).
As h→0, this becomes -1/(8x2), the derivative of f(x)=1/(8x).