[tex]2^{-3}[/tex] is the same as [tex]\frac{1}{2^3}[/tex] because of the rule [tex]x^{-k} = \frac{1}{x^k}[/tex]
The negative exponent says to take the reciprocal of the base to make the exponent positive. The original base is 2, of which the reciprocal is 1/2.