1. Which breed of bunny is the best? I would suggest Holland Lops. I've heard they are friendly dwarf rabbits. However, they are active and don't exactly enjoy being hugged all the time. (They are also adorable... hint, hint.)
2. What are the aprox. costs of cages? Depending on the cage, they can cost hundreds of dollars. But you could probably get a small wire one for less than $50.
3. What's the best feed for bunnies? Regular rabbit food is good enough. I feed mine the 50 lb bag of Producer's Pride, but Purina and other brand-names are fine, too.
4. Where can I get bunnies that's nearest to me? Breeders usually have plenty in stock but sell pricey rabbits, even pets without papers. I would suggest checking Craigslist for your area and other online classifieds. I found two of my rabbits on Craigslist for a cheap price in my own town.