Understanding the blow up of $\mathbb{A}^2$ in $\left<x_0,x_1\right>$.

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The following is an example from Gathmann's notes on algebraic geometry:

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I am having problems with showing, rigorously, that $\tilde X$ is given by the prescribed equations. First, I do not get why the RHS is even a closed subset. Yes, it is given by the zero set of a polynomial equation- but the topology on $\mathbb{A}^2\times\mathbb{P}^1$ is given by the product topology, and I do not see how to show that a zero set of a polynomial equation is closed in this product topology. Second, why can't we have a smaller closed subset containing $\Gamma$?

Thanks in advance.