Wool

Wool (previously known as cloth) is a block derived from sheep that can be dyed in any of the 16 different colors.

Obtaining
Wool can be broken using any tool, but shears is the fastest.

Sheep
1 to 3 wool is harvested by right-clicking an adult sheep with shears. If unshorn, sheep will drop 1 wool upon death. The wool dropped will be the same color as the sheep's wool. The drop rates are not affected by the Fortune or Looting enchantments.

White, light gray, gray, black, brown, and pink wool can be found naturally on sheep. The rest of the colors require dyeing sheep.

Naturally generated


Black wool blocks can also be found naturally in NPC villages as part of a streetlight-like structure where they lie on top of three fence posts, surrounded by 4 torches.

Trading
Shepherd villagers sell each separate color of wool for a price of 1 to 2 emeralds for one wool as part of their tier 2 trades.

Usage
Wool blocks are weak, highly flammable, and offer little resistance against explosions. Their primary usage is as a decorative block.

Trading
Shepherd villagers buy 16 to 22 white wool for 1 emerald as part of their tier 1 trades.

Crafting ingredient
Any color of wool or wood may be used for beds and paintings but it has no effect on the product's final appearance.

Trivia

 * The damage values for wool and their respective dyes are the inverse of each other. This is also true for Stained Glass and Stained Clay.
 * White wool can be crafted together with bone meal, but this simply wastes the bone meal.
 * It is rarer to see a natural pink sheep than a natural zombie or skeleton with diamond armor. Both can be faked, however.
 * On the Xbox 360 Edition Tutorial Map, the Minecraft Logo seen in the sky is made of Light Gray and Black Wool.

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