My answer is not to update the Google play service but work around. Get the play service version of the emulator by using the following code
getPackageManager().getPackageInfo("com.google.android.gms", 0 ).versionName);
For example if the value is "9.8.79" then use the nearest lesser version available com.google.android.gms:play-services:9.8.0'
This will resolve your problem. Get the release history from https://developers.google.com/android/guides/releases#november_2016_-_v100