1. Update build.gradle

Example of build.gradle: app/src/build.gradle

apply plugin:'com.android.application'

android {
compileSdkVersion 20
buildToolsVersion "20.0.0"

defaultConfig {
applicationId "com.courses.sottocorp.sunshine"
minSdkVersion 10
targetSdkVersion 20
versionCode 1
versionName "1.0"}
buildTypes {
release {
runProguard false
proguardFiles getDefaultProguardFile('proguard-android.txt'),'proguard-rules.pro'}}}

dependencies {
compile fileTree(dir:'libs', include:['*.jar'])
compile 'com.android.support:appcompat-v7:20.0.0'
compile 'com.android.support:support-v4:20.0.0'}
  1. Sync gradle button
  2. Rebuild project

After updating the build.gradle minSdkVersion, you have to click on the button to sync gradle file ("Sync Project with Gradle files").

That will clear the market.

Updating manifest.xml, e.g. deleting any references to SDK levels in the manifest file, is NOT necessary anymore in Android Studio.