@Alan1375
You can decline a booking request, but if you choose reason "i want better offer", then dates will be blocked permanently.
Options:
- Message the guest politely price is a mistake and ask to retract booking request.
They can book again after the update or sent them a special offer !
- Decline the Booking request for other reason like "dates are not available". Airbnb will block dates, but you van reopen them manually. But you lost the guest.
If price is not extremely wrong, maybe consider to accept booking request.