@Shelley346 @Mike-And-Jane0
As Mike and Jane point out, low prices will always be encouraged by Airbnb. This ensures they get bookings (and their commissions) and helps keep Airbnb the dominant market player.
However, beware that low prices tend to attract a different character of guest. We've found that the guests who pay the least tend to be the most problematic.
So keep your prices as high as you can without scaring away bookings. If bookings are coming in fast and furious, then you have room to do this.
Our rule of thumb is to check similar listings in your area, then price a little higher. It will slow down the bookings, but when your local competition gets booked, you'll be the only game in town. Airbnb's greatest strength is that they really bring in the bookings, so you'll get them, even at a higher price. And generally speaking, you'll tend to get nicer guests.
Just be patient, and be sure to deliver a great experience for the guests, and you'll consistently receive good reviews, which in turn, attracts more bookings.
One last piece of advice: you're on your own with this, so use your instincts to decide if a potential guest seems a little "off", and scare them away if you feel uncomfortable with their inquiry or request. There's another booking waiting in the wings.
The consequences of hosting "bad" guests range from minor aggravation all the way to costing you $1000's, and don't expect Airbnb to help you, no matter what you've been led to believe. Just be careful about who you accept, take good care of your property and your guests, and you should be quite successful.
Good luck with everything!