Proof.
We have to show that the diagonal \Delta : X \to X \times _ Y X is a closed immersion. We already know \Delta is representable, separated, a monomorphism, and locally of finite type, see Morphisms of Spaces, Lemma 67.4.1. Choose an affine scheme U and an étale morphism U \to X \times _ Y X. Set V = X \times _{\Delta , X \times _ Y X} U. It suffices to show that V \to U is a closed immersion (Morphisms of Spaces, Lemma 67.12.1). Since X \times _ Y X is locally of finite type over Y we see that U is Noetherian (use Morphisms of Spaces, Lemmas 67.23.2, 67.23.3, and 67.23.5). Note that V is a scheme as \Delta is representable. Also, V is quasi-compact because f is quasi-separated. Hence V \to U is of finite type. Consider a commutative diagram
\xymatrix{ \mathop{\mathrm{Spec}}(K) \ar[r] \ar[d] & V \ar[d] \\ \mathop{\mathrm{Spec}}(A) \ar[r] \ar@{-->}[ru] & U }
of morphisms of schemes where A is a discrete valuation ring with fraction field K. We can interpret the composition \mathop{\mathrm{Spec}}(A) \to U \to X \times _ Y X as a pair of morphisms a, b : \mathop{\mathrm{Spec}}(A) \to X agreeing as morphisms into Y and equal when restricted to \mathop{\mathrm{Spec}}(K). Hence our assumption (3) guarantees a = b and we find the dotted arrow in the diagram. By Limits, Lemma 32.15.3 we conclude that V \to U is proper. In other words, \Delta is proper. Since \Delta is a monomorphism, we find that \Delta is a closed immersion (Étale Morphisms, Lemma 41.7.2) as desired.
\square
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