How can I represent the following in XSD.
<element name="price-update" type="string"></element>
is about as close as you can get.
(I thought it best to move the answer out of the comments and into an actual answer).
A CDATA tag is merely a means of escaping data as a text node. Therefore you cannot stipulate that you require a CDATA node.
From a DOM perspective, the following documents are identical:
<doc>value</doc>
and
<doc><![CDATA[value]]></doc>